My sister is trustee to my 500 , 000 plus inheritance Both sisters serve to inherit ant the principle should I die .

Asked over 1 year ago - Branford, CT

Proceeds generated are more than 2 , 000 monthly , although I receive Andaman rest is reinvested . I cant help but feel there is a conflict on interest

Attorney answers (4)

  1. Jeffrey L Crown

    Pro

    Contributor Level 12

    3

    Lawyers agree

    Answered . This is not a questions that can be answered without further information. The answer depends to a large extent on the terms of the document creating the trust [trust agreement or will]. You should discuss this with a lawyer who has experience in trust and estate law.

    LEGAL DISCLAIMER Atty. Crown is licensed to practice law in Connecticut with an office in Rocky Hill. His phone... more
  2. Scott D Rosenberg

    Contributor Level 15

    3

    Lawyers agree

    Answered . There are many things missing from your question that are necessary to point you in the right direction. For one, you have not specified whether you are allowed to receive principal as well as income from the trust, which on a trust that isn't intended to provide for your children also would usually be the case. If it is, then the amount of distributions may be arbitrary or improper, but the investment strategy cannot be challenged on growth vs. revenue portfolio. Also, I'm not sure what "Andaman" is supposed to be.

    As to your main question, it is a conflict of interest, but one that was intended by the settlor (creator-funder), which means it is not, in and of itself, grounds to request a change. Your sister, as trustee, is still bound to a fiduciary duty to execute the goals and requirements of the trust in a reasonable way, whatever they might be. If there is a strained relationship or you feel she is engaging in unethical conduct and not being fair to you, you are entitled to request a full accounting of the trust portfolio and her management actions, as well as to seek to remove her as trustee. However, in a situation where one sibling is managing the trust for another, the Court's review will hinge largely on the stated purpose of the trust as well as the unwritten backstory. If the trust was created this way because you are much younger and were a minor when the trust/will was drafted, distributions ought to be made generously. However, if evidence shows that the trust was created because of gambling or substance abuse issues, as two examples, the trustee would have a much longer leash.

    If you have serious concerns about mismanagement, you should bring a copy of the trust to an experienced estate planning attorney to discuss your options in further detail. Best of luck.

    Attorney Rosenberg is admitted to practice in Connecticut and Massachusetts, and currently practices in South-... more
  3. Joseph Franklin Pippen Jr.

    Pro

    Contributor Level 20

    2

    Lawyers agree

    Best Answer
    chosen by asker

    Answered . The trustee that invests the money and one day receives the remainder sometimes does have a conflict.
    For example-stocks can pay lousy dividends but appreciate greatly in value.
    Have an attorney review the investments to make sure you are being treated fairly.

    The answer given does not imply that an attorney-client relationship has been established and your best course of... more
  4. James P. Frederick

    Contributor Level 20

    3

    Lawyers agree

    Answered . Potential conflicts of interest are inherent in many estate plans. The trustee is subject to a fiduciary standard and as long as she does not violate that, there is probably not much you can do.

    James Frederick

    ***Please be sure to mark if you find the answer "helpful" or a "best" answer. Thank you! I hope this helps. ******... more

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